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Covariance Formula
How do you derive the following formula from basics?Covariance (X,Y) = E[XY] - (UX * UY)WhereUX represents mean of XUY represents mean of Y
Covariance Formula
COVAR(x,y) = E[(x-m(x)).(y-my))] = E[x.y] - E[m(x).y] - E[x.m(y)] + E[m(x).m(y)] = what you asked (as constants can be taken out of expectation)futureoptions, by asking really basic questions you are wasting your currentoptions...